AD&BIORESOURCES News
THE UK ANAEROBIC DIGESTION & BIORESOURCES TRADE ASSOCIATION’S BI-MONTHLY MAGAZINE adbioresources.org
Issue 28 SEPTEMBER 2015
Fighting for AD, the UK industry with global ambition Biomethane – fuelling Britain’s green gas revolution Defending our incentives
ADBA’s first in-depth AD Market Report UK AD & Biogas 2015 review and Industry Awards winners
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AD & Bioresources News | september 2015
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Foreword Why gas, not electric, is the real green dream
Inside this issue > Foreword:
3
ADBA News:
4-6
Government & Agency News:
7
Feature – Biomethane for transport:
8-13
Technology Focus: Additives, enzymes and process optimisation:
15-17
UK AD & Biogas Industry Awards 2015 Review:
18-19
UK AD & Biogas 2015 Review:
20-21
UK AD & Biogas 2015 Exhibitor Highlights:
22-23
Advice Clinic: Regulatory Advice:
24-25
Members’ News and Views:
26-28
R&D Update: Policy:
29 30-32
Operator & Working Groups:
33
Upcoming Events:
35
Membership Matters:
36-38
By John Bickerton, Chief Engineer, Reading Buses
P
eople say that battery technology for electric cars is ten years away; raw diesel emissions won’t become socially acceptable in urban areas before then. They also say that gas power could offer an answer to that dichotomy – and then wring their hands about a lack of availability, or range, or vehicles. There’s a reluctance for fleet operators to take the plunge and invest in these alternative fuels because the risks are all borne by the early adopters. However, a growing number of fleet managers can see substantial benefits in natural gas fleets. Gas infrastructure is widespread and vehicles are comparably cheap, relatively simple and very reliable. My gas buses don’t need particulate traps or catalytic reduction to achieve the latest emissions standards and are a world away from the complexity of hybrid electric vehicles – in fact, they’re my most reliable buses. The fuel offers a commercial business case over the life of the vehicle without funding or grants, and it’s easy to buy carbon-neutral biogas by certification. Not even electric offers these advantages. It’s not plain sailing though. There’s an upfront cost for the compression equipment, and the headache of planning and groundworks shouldn’t be underestimated. If anything, these are the factors which could restrict the spread of fuelling stations and hold back fleet managers from adopting gas – although thankfully, and not before time, some fuel suppliers are now offering to shoulder the cost of providing the infrastructure themselves (see feature, p8). As the Renewable Heat Incentive becomes harder for biomethane producers to secure there are clear parallels with our own Bus Service Operators Grant, which is under threat from successive budget reviews. This has forced the bus industry to modernise and become more innovative, and bus fuel economy has almost doubled over ten years as a result. It was great to see so many people involved with producing and processing biomethane at this year’s UK AD & Biogas, and producers must now follow a similar path of innovation to support the whole market chain.
Cover image: GENeco
Editorial: To be considered for inclusion in a future issue contact: Editor: Kate O’Reilly T +44 (0)7894 039609 E kate.oreilly@adbioresources.org
AD&Bioresources News FEATURES Features planned for Issue 29 (November) include: • Unlocking feedstock • Advice Clinic: On-farm AD • Technology Focus: Biogas upgrading Copy deadline: 4 September
Sponsorship and advertising: Jamil Ahad T +44 (0)203 176 4414 E jamil.ahad@adbioresources.org Rachel McGhie T +44 (0)203 176 5418 E rachel.mcghie@adbioresources.org
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CNG and LNG vehicles are available – and they’re not just ‘acceptable’, they're good. And with fuel suppliers now providing the refuelling stations and easing the planning and groundwork processes, there’s no excuse not to jump on board. Reading Buses have learned many lessons, some painful, as we have grown our gas fleet. The result has been worth the journey to date but if it had been easier to adopt then our industry wouldn’t need a few evangelical proponents; gas would be the default choice and the world would notice that electric vehicles aren’t necessarily green. www.reading-buses.co.uk
Biomethane Certification Scheme Green Gas Trading’s Biomethane Certification Scheme (BMCS) enables both biomethane producers and fuel users to benefit from the ‘green’ element of the gas. Already used by companies such as Reading Buses, M&S, Future Biogas and Biogas Power, the scheme allows producers to claim the RHI and also generate an additional income by monetising the green element (separate from the physical ‘brown’ gas itself). And by purchasing biomethane certificates, end-users can decarbonise their gas supply. To find out more go to: www.greengastrading.co.uk
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ADBA News Championing the case for continued support for AD
By Charlotte Morton, ADBA’s Chief Executive
I
was delighted to open UK AD & Biogas 2015 with the announcement that the industry has passed a significant milestone; the unveiling of the UK’s 400th biogas plant, Biogen’s Bryn Pica food waste facility in South Wales. With almost 100 plants expected to be commissioned by the end of this year – mirroring last year’s surge in which AD’s electrical capacity grew by 40 per cent – the industry’s prospects should look encouraging for developers, operators and investors alike. However, since the trade show, the new government’s attitude to renewable energy support has become clearer – and the story does not look positive. Despite the government’s support for other sources of UK gas, we faced a surprise £11m cut due to the removal of levy exemption certificates (LECs) in the summer budget; the proposed removal of FIT pre-accreditation, ahead of the main FIT review/consultation; and silence on support for biomethane and biogas heat under the RHI from April 2016. In the FIT pre-accreditation consultation document, the government made it clear that it recognised that this would impact upon deployment. Given the billions of pounds’ worth of benefits that government will get in return for its continuing investment in growing the anaerobic digestion industry, these decisions make no sense. I can only conclude that we are not effectively communicating the value of the industry to those making the decisions, despite all our efforts to date. So we must collectively make absolutely sure that every MP and minister is fully aware of the value delivered by the AD industry. For our part, however, if we are to continue to demonstrate value for money against other renewables, we must commit to both reducing costs significantly – we estimate by 20 per cent within this parliament – and to improving performance, to convince government that direct support will reduce over time. In our engagement with political representatives, we must remain mindful of the government’s current priorities – reducing the deficit, creating jobs and improving the cost-effectiveness of public spending. As such, our
policy team is working with members to compile a compelling case which demonstrates AD’s return on investment (ROI), which we can all use to promote the industry. Some of the key areas we need to demonstrate are: 1. Cost effectiveness AD is about more than just renewable energy, and our calculations suggest that supporting this technology would save government an additional £450m between 2016 and 2040 in greenhouse gas mitigation, compared to the next cheapest renewable. We will be cheaper than nuclear by the time nuclear is delivered, providing localised generation without the risks of a single large development. Overall, we could reduce the UK’s carbon emissions by four per cent, a huge number for any single technology. 2. Economic productivity and global competitiveness An industry already employing 4,500 people and with the potential to employ over 30,000 more, many in rural areas and manufacturing jobs, is worth protecting. On-site AD enhances the economic and environmental sustainability of farming and food production. But we also need to show the value of the potential export markets we could create from a thriving UK sector – the global AD market is worth billions. 3. Domestic gas production and baseload electricity The government has clearly stated that it recognises the importance of indigenous gas supplies, and that it is prepared to pay for baseload electricity. We can deliver around 30 per cent of either domestic gas or electricity demand, saving imports and enhancing energy security. This also has a quantifiable economic benefit in balancing the intermittency of other renewables and reducing the need to reinforce the grid. 4. Meeting recycling targets The government will not be able to meet its recycling targets without more food waste AD capacity and the collection schemes which support it. MPs tend only to be interested in matters that either fall within their direct policy remit or that affect their constituency – this makes member-led engagement vitally important in providing the foot through the door that will enable all of us to make a compelling case for AD’s role within a thriving green economy. We must get in front of MPs and ensure they understand the excellent ROI delivered by the industry, and how current government policy is putting the industry’s global potential and local jobs at risk. Together, we must champion the compelling case for continued support for anaerobic digestion.
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ADBA News Meeting with Resource Minister kicks off food waste progress Along with other organisations and trade associations, our Chief Executive, Charlotte Morton, met with Defra Resource Minister, Rory Stewart MP, to discuss a variety of issues, including addressing the stalled recycling rates in England. Charlotte informed the minister that the waste trade bodies were already working together with WRAP, local authority representatives and the Green Investment Bank (GIB) to develop proposals for streamlining waste collection systems, with a view to saving money and improving recycling rates. It was agreed that separate food waste collections are essential if the government is serious about improving recycling rates. And from the collectors’ perspective, standardised collection schemes would help reduce costs, enabling local authorities to deliver more cost effective waste services. Rory Stewart MP suggested that GIB funding could support councils to meet upfront costs if industry could demonstrate reduced service costs. He
concluded that he would be receptive to proposals for standard packages for waste collection systems, provided they have broad support (from organisations like the British Retail Consortium) and cost modelling to demonstrate the proposed savings, in order for him to drive a policy through HM Treasury. Economic productivity arguments will also be helpful, as will comparisons with other countries. WRAP suggested that industry should aim for a ten-year timeframe, so that local authorities and businesses can plan for changing systems and take confidence that consensus is on the way, thereby reducing political risk and the cost of funding changes. We have agreed that WRAP will now facilitate three workstreams, which together could lead to positive changes in food waste policy, if they can be widely supported. The first will consider opportunities to standardise local authority waste collections, with the aim of both saving money and ensuring better environmental outcomes. Second, a Food Waste Recycling Action Plan will be developed to consider specific policy changes to support food waste collections. Finally, a third group will consider how recycling targets could better impact upon behaviour, for example by ensuring they drive carbon savings. We will keep members updated via the members’ area of our website as this work progresses.
Food waste operators – Have your say Food waste operators are invited to join our next meeting in late September/early October (date and venue tbc) to discuss this subject in more detail. Contact william.bushby@adbioresources.org for more info.
ADBA makes the case for continuing RHI funding The Renewable Heat Incentive (RHI) was the first scheme of its kind in the world and after a slow start it has successfully supported the delivery of over 30 biomethane plants. However, unlike the levy-funded Feed-in Tariff (FIT), the RHI is paid for directly by the taxpayer, meaning its budgets are set as part of the government’s overall spending review process. As yet, no budget is confirmed for the period from April 2016. Over the summer we have been working with members to develop a paper to submit to DECC and the Treasury on the future of the RHI, detailing the budget which biomethane and biogas heat require, and why they should be supported. We have now submitted our proposal, which focuses on three main areas: what the RHI is currently delivering; what the RHI could deliver in the future; and the structural changes that we suggest should be made to improve the incentive. Our paper clearly demonstrates the return on investment which government receives for incentivising biogas and biomethane. The RHI already provides excellent value for money in decarbonising the heating system and increasing energy security, but we believe that this can improve further as the industry develops. As a result, we have offered for the industry to work with government to help bring down costs and create greater efficiencies within the sector. To read our submission in full, go to adbioresources.org or contact william.bushby@adbioresources.org www.adbioresources.org adbioresources.org
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ADBA News
ADBA counters misinformation on maize for AD
As the Committee on Climate Change has recognised, we need bioenergy not only to meet our climate change targets but also to keep the lights on. And biogas is one of the most efficient forms available. The AD industry has the potential to reduce climate change emissions, including those from farming, by as much as four per cent – and generate around 30 per cent of the UK’s domestic gas demand. Whilst the AD industry has a huge contribution to make, the 30,000 hectares of maize grown for AD in 2014 accounts for just 0.6 per cent of England’s total arable land and less than a fifth of the total maize crop, most of which is used for forage. Despite our small size in farming terms, given increasing regulatory and media pressure, the AD industry needs to continue to demonstrate how seriously we take our responsibility to the local environment. AD crops can form a crucial component of a sustainable agricultural rotation, making break, catch and cover crops a commercially viable option whilst reducing fertiliser and pesticide use, and maintaining and enhancing biodiversity. At UK AD & Biogas 2015, our Chief Executive, Charlotte Morton, was pleased to announce that 34 member plants have already signed up to our Best Practice guidelines for Crop Feedstocks in AD, which was compiled in partnership with the NFU, CLA, REA and NNFCC and with the support of Defra, to demonstrate how crop AD can generate vital renewable energy while supporting the environment. To add your name to this list or for further information, contact derek.sivyer@adbioresources.org
ADBA joins 80 leading businesses in call for PM to step up climate change action ADBA has joined a coalition of UK businesses – including Willmott Dixon, Cisco, E.on, John Lewis, SSE, and BT – to call on the Prime Minister to step up the fight against climate change and to support the green economy. In an open letter published in the Financial Times, the coalition of UK businesses against climate change called on the PM to: • Seek a strong global climate deal at the 2015 United Nations Climate Change Conference in Paris this December, which limits temperature rises to below 2°C; • Set an ambitious fifth carbon budget to drive forward UK emissions reductions (covering the period 2028-32); • Establish a long-term framework for investment in the low carbon economy. This will give the industry much-needed clarity over what is expected in terms of low carbon development, and boost the confidence of green investors. Making the case for the green economy and the need to tackle climate change is vital at a time when the industry is already facing negative policy changes on a number of fronts, including: the £11m cut from the removal of LECs in the summer budget; uncertainty over the future of RHI beyond next year; and the FIT pre-accreditation review and ongoing degressions.
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Get involved With so many negative policy changes on the horizon, your support has never been more important – if you haven’t already done so, download our template letter today and send it to your local MP. http://adbioresources.org/docs/yourvoice.docx
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Government & Agency News Green Investment Bank announces 2014/15 results The UK Green Investment Bank plc (GIB) has confirmed that it backed 22 new green energy projects in 2014/15, committing £723m of its own capital. In total, it has committed £2bn to 50 UK projects worth over £8bn and has now reached profitability. In addition, the UK Government has announced its intention to bring private capital into GIB. Speaking at the Bank’s London Annual Review event the UK Business Secretary, Sajid Javid, revealed: “The Green Investment Bank has shown that investment in green technologies can be a profitable business. The challenge now is to build on this success.” www.greeninvestmentbank.com
Honours for WRAP Chief and AD expert WRAP Chief Executive Liz Goodwin has Dr Clare Dr Liz Goodwin, been awarded an OBE for services to Lukehurst, OBE OBE the environment in the Queen’s birthday honours list. Dr Goodwin has led WRAP since 2007, including its transition to becoming a charity in 2014, and commented: “I’m honoured to receive this award, which I see very much as recognition for all the staff at WRAP who have worked tirelessly to make the world a better place.” Joining Dr Goodwin on the honours list is Dr Clare Lukehurst of international organics working group Task 37 (UK), widely acknowledged as one of the UK’s leading experts in AD. Dr Lukehurst was awarded a Lifetime Achievement award at the UK AD & Biogas Industry Awards 2013.
WRAP reports steady gate fees; ADBA data shows decline
from AD operators indicates gate fees for food waste from commercial and industrial sources are lower than those charged for household food waste.
A report from WRAP shows that fees remain relatively consistent for most UK waste treatment and disposal options. Based on information from local authorities and waste treatment companies, the Gate Fees Report: comparing the cost of alternative waste treatment options (2014/15) presents the median and range of gate fees for a variety of recycling and waste treatment options. The median charge paid by local authorities for food waste treated at AD facilities stays at £40 per tonne, but WRAP also reported that feedback
ADBA collated a large amount of data on gate fees during the RHI review in 2014, which shows that gate fees for new or short term contracts are much lower than WRAP’s figures for either household or C&I sources. This discrepancy is likely to arise because WRAP’s data is based on existing, longer-term contracts, whereas we were assessing contract prices for new plants. Our market report contains more information on this. www.wrap.org.uk http://bit.ly/1HNOURY
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Biomethane for transport
Is the UK’s transport sector heading for a green gas revolution? has provided the necessary kickstart for biomethane, it only incentivises injection into the gas grid. Operators wishing to produce biomethane for direct use as a transport fuel must instead claim the Renewable Transport Fuels Obligation (RTFO), which is significantly lower than the RHI.
DHL’s ‘City Safe, City Quiet’ CNG Scania Euro VI gas truck
T
he UK AD industry grew exponentially in 2014, and nowhere was this growth more evident than in the biomethane sector. From a starting point of just four operational biomethane plants at the end of 2013, the following 12 months saw that rise to 22. At the time of going to press, there are over 30 biomethane plants operating in the UK. Successful resolution of some of the regulatory issues around biomethane has helped the sector to flourish, not least increasing the maximum permitted levels of oxygen in biomethane for grid injection. The Gas Distribution Networks have also worked hard to speed up and simplify connections, with National Grid’s Stuart Easterbrook revealing at UK AD & Biogas 2015 that issuing agreement on a biomethane project is now taking days instead of months. Dr Will Mezzullo of Future Biogas also confirmed that it’s an improving picture: “There are still improvements to be made – for example, around the costs of propane addition and the regulatory burden of flow weighted average calorific value – but overall, the costs and timescales associated with grid injection are reducing.”
Incentivising biomethane
While such improvements are helping to fuel the rapid growth in Britain’s biomethane sector, its success can also be attributed to the introduction of the Renewable Heat Incentive (RHI). While the uncertainty currently surrounding the RHI is damaging to the sector’s future growth, the recent rise in the number of biomethane plants is proof of the impact that incentives make – and the timescale needed for them to take effect. After all, the RHI was introduced in 2011, yet the benefits were not felt until 2014. Furthermore, while the RHI
Fortunately, solutions such as Green Gas Trading’s Biomethane Certification Scheme (BMCS) are providing an alternative to producing biomethane for direct use as a transport fuel. In place of buying biomethane direct from the supplier, fleet operators can instead purchase natural gas and then use Biomethane Certificates to decarbonise their natural gas supply. This particularly benefits bus operators, as it enables them to meet the requirements of the Bus Service Operators’ Grant subsidy (although as yet Biomethane Certificates cannot be used for other carbon reporting purposes). The BMCS also benefits biomethane producers, allowing them to claim the RHI and also monetise the ‘green’ element of their gas (separate from the physical ‘brown’ gas itself), thereby generating an additional income.
Britain’s air quality
Nevertheless, the disparity in incentives for biomethane is particularly surprising when you consider the damage being caused by transport-related pollution. The UK is already in breach of EU air pollution regulations and is facing huge fines as a result. Reducing CO2 emissions, NOx and particulates from our road transport network is therefore of critical importance. And while Mayor of London, Boris Johnson, is right to be worried about the capital being named one of Europe’s most polluted cities, this is not just a concern for Londoners – two schools in South Yorkshire, situated within 50 yards of the M1 motorway and surrounded by busy trunk roads, are to become the first in Britain to be shut because of air pollution. Finding solutions to mitigate the impact of the UK’s transport-related pollution is therefore essential, and while both industry and government are taking steps to do so, there is still more work to be done. New Euro VI diesel vehicles are helping to clean up the industry, but tailpipe emissions from older models are still an issue. And while the government may be focused on electric, as far as HGVs, vans and buses – the biggest polluters, responsible for around 40 per cent of the UK’s vehicle emissions – are concerned, this is not a viable solution. Electric vehicles have limited range and are better suited to urban passenger journeys. Gas, on the other hand, is an ideal fuel for larger vehicles, offering a far wider range than electric and a similar refuelling experience to diesel. And as a green gas, biomethane offers additional environmental benefits, too; converting a Euro IV or V diesel vehicle to gas can reduce air quality pollutants by up to 90 per cent, and even against newer vehicles, biomethane can offer more than a 50 per cent reduction in CO2 emissions, on a well to wheel basis. London is now one of Europe’s most polluted cities
Bus companies are waking up to the carbon and financial savings offered by biomethane
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Biomethane for transport Biomethane production
Tony Griffiths, of Gas Alliance Group, believes there is plenty of biomethane supply
Vehicle availability
With so much to gain, why is the UK still lagging behind countries such as Italy, Sweden and even Pakistan when it comes to making the switch to gas? In the past, vehicle availability has been cited as a barrier to greater gas uptake in Britain, but this is becoming a weaker argument as more right-hand drive gas models come onto the market. “Development of gas engines has continued and most heavy-duty engine manufacturers now have a dedicated gas engine in their range,” states Nick Blake, Head of Engineering for Mercedes-Benz Trucks. Tony Griffiths, UK Sales Manager for Gas Alliance Group, believes that this is a great time for UK fleet operators to make the switch: “Companies such as Scania, Iveco and Mercedes are now developing dedicated right-hand drive gas vehicles. These aren’t trial vehicles – they have been running successfully in mainland Europe for many years.” Crucially, Euro VI-compliant gas vehicles are now available to UK customers, too. “Euro VI regulations were introduced on 1 January 2014 and for a while there was a holding period as far as gas was concerned – manufacturers prioritised their diesel models first before turning their attention to alternative fuels,” outlines Ian MacAulay, Innovation Manager for DHL. “Now that vehicles such as the Scania Euro VI are on the market, fleet operators such as ourselves can invest in the technology.” At UK AD & Biogas 2015, visitors were able to see a selection of gas vehicles, including the Iveco urban delivery van and the new Scania Euro VI used by DHL, both of which run on compressed natural gas (CNG), as opposed to liquid natural gas (LNG). “LNG is cryogenic so drivers require training before being able to refuel, and must wear the correct gloves and goggles,” explains Ian. “Over time LNG will start to warm up, turning back into gas, so it is critical that the fuel is used within a few days of refuelling to avoid venting any gas into the atmosphere. On the plus side, it takes up much less volume than CNG and offers a greater range, making it ideal for HGVs. CNG, however, is easier to handle and with a range of around 200 miles is more suited to urban delivery vehicles and buses.” Compared to its Euro VI diesel counterpart, DHL states that its ‘City Safe, City Quiet’ CNG Scania Euro VI gas truck offers up to a 50 per cent reduction in engine noise; a 68 per cent reduction in particulates; and a 39 per cent reduction in NOx – impressive claims, particularly when you consider the fact that gas is currently around 10p per kilo less expensive than diesel.
GENeco’s Bio-Bus runs on biomethane generated from human waste and food waste
With vehicle availability no longer a concern, could a lack of fuel be behind the UK’s reluctance to switch to gas? “Biomethane is, to all intents and purposes, the same as natural gas,” explains Nick Blake. “The attraction of biomethane, of course, is its low carbon credentials.” At UK AD & Biogas 2015, Jim York, Vice President of GoGreen EMEA, DHL Supply Chain, explained why getting hold of biomethane fuel is so important: “We have a supply of natural gas and, alongside our natural gas vehicles, run a fleet of 150 dual fuel trucks, which delivers 12-15 per cent carbon emissions savings over diesel. If we put biomethane into those trucks, it pushes those carbon savings up to 45-50 per cent.” Jim continues: “Not only does biomethane give us better credentials on the carbon emissions, it also gives us more control. Sustainability in our industry means getting a firmer grip on our fuel supply; not being in the volatile market that we’re in with our oil fuels at the moment, where price and availability are continuing concerns for us.” Fleet operators looking to increase their carbon credentials should remember, however, that biomethane can also derive from landfill gas, although this is now beginning to change. “The recent growth in AD plants has led to an increase in biogas production. This is in stark contrast to landfill gas, which will see a decline in production if it hasn’t done so already, as less food waste is sent to landfill,” explains Mohammed Saddiq, Managing Director of GENeco, part of Wessex Water. The company is famous for its Bio-Bus, which runs on biomethane generated at its Bristol sewage works. “Biomethane from AD is therefore of huge importance going forward, especially for companies who want to reduce their carbon emissions.” Although only 12 per cent of food waste is currently recycled through AD – a fact which drives ADBA to continue to lobby for source-segregated food waste collections – the recent surge in biomethane plants means there is currently no shortage of supply. “It’s a myth that there’s not enough biomethane supply,” states Tony Griffiths. “I believe that there’s plenty of biomethane to encourage all the OEMs and fleet operators in the UK to invest in biomethane vehicles.”
Developing the infrastructure
So, could a lack of refuelling infrastructure be the problem? Gasrec refuels around 60-70 per cent of the UK’s gas HGVs across 11 dedicated and open access stations. The company’s DIRFT facility at Daventry is now the EU’s largest liquefied filling station. “The number of vehicles refuelling at DIRFT is a good measure of the overall gas market,” states Ben Sawford, Gasrec’s Chief Commercial Officer. “When it opened in May 2013, it was only serving around 35 vehicles per day. In the first year of operation this figure increased to 90-100, and it’s now refuelling up to 200, but the capacity is 700 vehicles per day. We anticipate a big take-off over the next four to five years. Fuel supply is relatively secure, the technology is up to scratch and the infrastructure is there.” Gasrec provides fuel for a number of companies’ gas fleets including Eddie Stobart, Howard Tenens, Arla Foods, Sainsbury’s, UPS, DHL and Waitrose/ John Lewis. “We currently have 44 trucks running on dual fuel and have two dedicated gas vehicles on order,” explains Justin Laney, John Lewis Partnership’s General Manager of Fleet. “The motivation for us was to reduce our fleet’s carbon emissions. We already had a very efficient distribution network and we wanted to enhance that through the use of low carbon fuels. We initially looked at 13 different Continued>>
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Biomethane for transport Gasrec’s DIRFT refuelling station serves 200 vehicles per day
alternative fuels. There was only really one that was properly sustainable, as well as stacking up financially and being available in the right quantities, and that was methane, particularly biomethane.” In addition to the public refuelling sites, some fleet operators have installed their own facilities. In the past, cost has been a barrier, but this need no longer be the case. “We take grid biomethane and design, build and install gas stations for our customers. We remove the upfront capital cost that could be a burden for the operator and include the entire cost of the project in a pence per kilo charge for the biomethane fuel they use,” explains Gas Alliance Group’s Tony Griffiths. Gas Alliance Group and Gasrec are making great strides in improving the UK’s gas fuel infrastructure but many in the industry believe that significant change won’t happen until government turns its focus towards gas, in the same way it has done for electric. Without the right support, we are in danger of remaining in our current chicken-and-egg situation, whereby operators suffering from ‘range anxiety’ will refuse to invest in gas vehicles until the infrastructure develops further, and refuelling companies will be reluctant to open more public sites until the number of gas vehicles on the road increases.
Biomethane for buses
Until greater government support arrives, it falls to trailblazers like Reading Buses to make a leap of faith and show others how it can be done. “A quarter of our fleet – 34 buses – runs on biomethane, which equates to all but one of our single deck vehicles,” says John Bickerton, Chief Engineer. “We have 165 buses in total and the biomethane buses are our most reliable by far. The vehicles are marginally more expensive to buy than diesel but the cost per mile of running them is about 60 per cent of a diesel bus, so you can quickly achieve payback,” continues John. “However, we invested £1.3m into our refuelling station so, for us, payback will take a little longer. But with companies such as Gasrec and Gas Alliance Group now offering to build and operate
Waitrose now operates 44 dual fuel trucks and has two dedicated gas vehicles on order
the refuelling stations themselves, the arguments against gas vehicles are diminishing fast.” John is also impressed with the performance of his biomethane buses. “They have fewer maintenance issues and the quieter, cleaner vehicles are a hit with both passengers and drivers. It’s great for people living on the bus routes, too, especially as a third of our service operates within an air quality management zone. In fact, we’re so pleased with them that we wanted to highlight their benefits to other bus operators. We staged a world record attempt for the fastest land speed record for a bus as proof of their performance – and of course, we succeeded. Our next step is to run a double decker biomethane bus, as our single decker gas service is proving so popular – some routes are up by as much as ten per cent.”
Government support
The air quality benefits of biomethane compared to diesel are clear and at around 90p per kilo it’s a cheaper fuel, too. The fuel and vehicles are available, and the refuelling companies are making great strides in developing the infrastructure. But industry can’t do it alone – it’s time for government to play its part in the great green gas revolution. “Here in the UK there just isn’t a big enough tariff to make producing biomethane for transport a viable option at the moment,” confirms Stephen McCulloch, Managing Director of Greenlane Biogas. “The RTFO is very small compared to what operators receive for injecting into the gas grid.” And it’s not just the producers who are disincentivised – there’s little support for fleet operators, either. “A few years ago we used to get the tax back on our fuel, through the Fuel Duty Rebate, but that became the Bus Service Operators’ Grant (BSOG), and we lost some of the value,” says John Bickerton. “Government is now looking at reducing that even further and, five years from Continued>>
Reading Buses showcased the performance of their biomethane buses by breaking the bus land speed record
Reading Buses’ CNG biomethane vehicle being refuelled
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Doing AD well
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Biomethane for transport now, I doubt we’ll be getting any rebate back on our fuel duty at all, which will make our operations much more expensive. We need clarity on where BSOG will go and support for low carbon, low pollution fuels in a much more overt, more assured way than we have at the moment.” John Lewis Partnership’s Justin Laney would also like to see changes to the way in which companies can reflect the use of biomethane, purchased with certificates, in their fleet. “We could do a lot more with gas vehicles if the decision went our way on the carbon reporting guidelines. We believe that biomethane certificates should be recognised for transport carbon reporting.” Many in the industry would also like to see the Department for Transport shift some of its attention away from electric and towards gas. “The Freight Transport Association’s view is that gas is the most feasible comprehensive alternative to diesel, particularly for long distance HGV movements where options such as electric are unviable,” confirms Rachel Dillon, Climate Change Policy Manager. John Stokes of Iveco goes further: “The government has put major resources into electric car powering points. If they put even a fraction of that into gas stations, they could really grow the market. Electricity is not the only solution – it’s expensive compared to gas and doesn’t deliver the range that commercial vehicles require.” ADBA has been heavily involved in the DfT HGV Gas Strategy and Transport Energy Task Force in the last couple of years, but the industry now needs the department to turn this work into firm policy.
Natural gas has the lowest carbon content of any hydrocarbon fuel and must be a serious contender if we are to decarbonise road transport. With its additional environmental credentials, biomethane is therefore the ultimate solution.”
The final word goes to Nick Blake: “With the goal of a carbon reduction of 80 per cent by 2050 enshrined in UK law, there has to be a sea change in the way we power vehicles. Electricity will undoubtedly fuel many smaller vehicles covering relatively short distances, but for heavy trucks where journeys are over hundreds of miles, there are few options available. Energy density is key.
www.nationalgrid.com www.futurebiogas.com www.gasalliance.eu www.geneco.uk.com www.greengastrading.co.uk www.gasrec.co.uk www.waitrose.com www.greenlanebiogas.co.uk www.tenens.com/environmental
The UK Government needs to turn its attention away from electric and towards gas
www.boerger.com
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september 2015 | AD & Bioresources News
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www.anaergia.com
ukoffice@anaergia.com
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AD & Bioresources News | september 2015
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Technology Focus: Additives, enzymes and process optimisation
A healthy plant equals healthy profits Dr Thomas Fritz, Project Manager for Schaumann BioEnergy, explains why keeping your plant healthy and optimised is key to AD success. Thankfully, most German operators now understand the importance of managing the biology of their plant and efficiencies have improved – the best performing German plants are now operating at around 97 per cent. UK operators can benefit from this experience to keep their plants operating efficiently from day one.”
Biological solutions from ADBA members
“The need for process additives is often overlooked during the planning stages of a project and quite often is only considered when a new plant is underperforming. In order to better understand operational efficiencies and find ways to improve them, we conducted research on 81 different German biogas plants processing a range of substrates including both food and farm waste. Samples were analysed for pH, dry matter, organic dry matter, VOA/TIC ratio, ammonium nitrogen, volatile fatty acids (VFA) and micro and macronutrients. The results were significant. Of the 81 digesters evaluated, we found that only 26 per cent showed an adequate process performance, meaning that in 74 per cent of cases inhibition effects or micronutrient deficiencies could be detected. Most inhibited digesters showed high concentrations of VFA, which will lead to a drop in methane production, and digesters with particular trace element deficiencies also showed a very low degree of plant efficiency. However, the application of tailor-made trace element additives led to a fast degradation of VFA – from >10,000 mg/l to <1000 mg/l – within just a few days. Plant efficiency was also increased to above 95 per cent. Furthermore, in digesters showing high concentrations of potential inhibitors like ammonia or hydrogen sulphide, the addition of plant-specific additives resulted in an increase in methane production of 15 per cent in just a few weeks, without increasing the feedstock volume.
plants. Specific enzymes can increase the speed of digestion – yes, this means more gas in less time! However, this is only cost effective if your process has a limited retention time, say under 90 days. The other main use for enzymes is in reducing the viscosity of the digester contents, which could be caused by fibre from grass silage, or pectins from rye, for example. Enzymes break down these materials quickly, reducing viscosity and therefore the load on pumping and mixing systems, preventing the digester from becoming too viscous to mix.
Scientists at Aqua Enviro have helped to dramatically improve the performance of Scottish Water’s flagship AD plant, which now creates enough electricity to generate power for 2,000 homes. Working with operators at the Deerdykes facility in Cumbernauld, the Aqua Enviro team has helped to troubleshoot performance issues and develop strategies for continual plant improvement. As part of this work, the company has implemented an electronic software system to optimise efficiency at the plant. Rowland Minall, Operations Manager, explains: “We carried out a site audit, which included investigative analysis to benchmark the plant’s performance and capacity. Historical data analysis helped to identify trends and impacts of varying feedstocks on plant operation, and key performance indicators (KPIs) were developed to balance throughput against biogas generation to maximise revenue. An operational advisory software system was developed to review and target specific KPIs. Training and technical support is ongoing to assist plant operators in maintaining performance.” Continued>>
Aqua Enviro has helped to improve the performance of Scottish Water’s flagship plant at Deerdkyes
In addition to additives, enzymes can also prove useful, particularly to operators of crop-based AD www.adbioresources.org adbioresources.org
september 2015 | AD & Bioresources News
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Technology Focus: Additives, enzymes and process optimisation Lukeneder is helping its customers to manage problems associated with hydrogen sulphide (H2S) and ammonia with its Deuto-Clear® Sulfo additive, a ready-to-use solution which improves plant efficiency and process stability. Dr Naoimh McMahon, UK representative for Lukeneder, states: “The Deuto-Clear® Sulfo binds the H2S and ammonia in the digester and, like preventative medicine, creates a healthy and productive environment for the biology to efficiently convert feedstock to methane. This improves the quality of the gas and prevents the escape of these dangerously corrosive gases.” As a result, one Lukeneder customer, using a feedstock mix of 4m³ maize silage, 75m³ cow manure and 4m³ chicken manure, decreased their plant’s H2S levels from 4,000 to 1,000ppm of raw gas. After also adding the product to their external scrubber, the customer’s levels had dropped to zero ppm. “Put simply, DeutoClear® Sulfo can improve the performance of your AD plant, and its dosage can be adjusted to fit the specific needs of your digester,” adds Dr McMahon.
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www.huber.co.uk
AD & Bioresources News | september 2015
Meanwhile, the team at FM BioEnergy – the UK partner of Schaumann BioEnergy – is clear on the financial consequences of running an inefficient AD operation. “A 1 MWe plant running at 70 per cent efficiency is losing a potential income of £1,000 per day, even before you factor in feedstock costs. If the cause of inefficiency is due to biological reasons the situation will not improve without intervention,” warns Tim Elsome, Business Development Manager for FM BioEnergy. “Assuming there have been no changes to the process, such as temperature, substrates or retention time, the likely cause will be trace element, BC.Pro.Start, supplied by FM BioEnergy, helped Springfield Energies’ plant return to full output in just 12 hours
rotamat@huber.co.uk
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The Citadel Biocat+™ system is improving performance at over 25 AD plants throughout Europe
or micronutrient, deficiencies.” Unless a plant is feeding a high volume of manure or slurry, it is likely to need trace element supplementation, something which many new operators are not aware of. The digester must first be analysed to determine the current trace elements levels, after which a bespoke solution can be made. However, FM BioEnergy can also supply BC.Pro.Start, an emergency product designed to kickstart new or underperforming plants. As Nigel Bloom of Springfield Energies says: “I was sceptical of the
Technology Focus: Additives, enzymes and process optimisation need for trace elements, but after my plant had been running at below capacity for a while and my FIT payments were down by £3,000 per week, I discussed the situation with FM BioEnergy and decided to give them a go. I was amazed to be back at full output within just 12 hours from the start of dosing.” Harnessing the power of a micro-organism that’s billions of years old is helping to improve AD plant performance for clients of Citadel Environmental Solutions. Its Biocat+™ system is a 100 per cent natural biotechnology that has a proven positive effect on the biological process within a digester. It is now in operation at 25 AD plants in several European countries, including the UK. Benefits include increased biogas production of at least ten per cent, improved stability, reduced cycle time and increased loading. So, how does it work? The core of the technology is based on the micro-organism ‘crenarchaeota’, which is dated as 3.6 billion years old and represents 35 per cent of the world’s biomass. BioCat+™ works by joining membranes and transferring energy to and from the bacteria inside the digester, receiving toxic waste molecules that normally prematurely shut down the bacteria. This extends the bacteria’s life cycle and accelerates the metabolic process by three degrees of magnitude.
Distributed in the UK through OMEX Environmental, the Axiase™ 100 enzyme has helped to keep Hallwick Energy’s plant consistent and stable
OMEX Environmental Ltd is now the UK distributor for DSM Biogas, who develop enzyme solutions for biogas applications processing fibre-rich or cereal-based feedstocks. These solutions include Axiase™ 100, an enzyme specifically suited to cereal-based fibre substrates such as rye and triticale, and MethaPlus L120, which can be applied to wastewater treatment plants to improve feedstock conversion (ie more biogas, less sludge). OMEX is currently supplying enzymes to Shropshirebased Hallwick Energy. Laura Grimwade from OMEX Environmental Ltd comments: “Axiase™ 100 has helped to decrease plant feedstock viscosity by breaking down the difficult substrates, making it easier to move the mixture through the pumps and valves. Axiase has helped to keep the feeding and biology of Hallwick Energy’s plant consistent and stable.” www.schaumann-bioenergy.eu www.aquaenviro.co.uk www.lukeneder.de www.fmbioenergy.co.uk www.citadel-biocat.com www.omex.co.uk
info@fmbioenergy.co.uk
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september 2015 | AD & Bioresources News
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UK AD & Biogas Industry Awards 2015 Review
Congratulations to the best of the best!
This year’s UK AD & Biogas Industry Awards proved our most successful to date, with more entries, more guests and more winners than ever before. The black-tie event, which rewards excellence in all aspects of the AD sector over the past 12 months, took place at the NEC, Birmingham, on the evening of 1 July and was hosted by Charlotte Smith from BBC Radio 4’s Farming Today. The night began with a networking drinks reception and three-course meal, after which guests were treated to entertainment from stand-up comedian Ian Moore, before the ceremony itself began.
Sponsored by:
With 60 entries for just 14 award categories, this year’s contest was particularly strong and the judges were keen to praise all the shortlisted companies. However, our winners should be rightly proud of their achievements, as our Chief Executive, Charlotte Morton, confirmed: “There has been a lot of exceptional hard work by dedicated professionals over the past five years, all aimed at scaling our industry. We’re honoured to recognise the greatest contributors to those sector triumphs that have developed AD as an established, proven technology. Their dedication to enhancing our industry’s reputation and continued growth is a testament to the innovative and entrepreneurial spirit that has helped establish the firm foundation on which AD is now positioned to expand.”
“We are extremely pleased to have been recognised for making the most of digestate. Our game-changing Nijhuis Ammonia Recovery system is an excellent example of our continuing innovations within the waste to value marketplace.”
“We’re honoured to win this prestigious award – it’s a tribute to the talents of our UK engineering and manufacturing teams.” Martin Wager, Business Development Manager, ENER-G Combined Power Ltd Winner – Innovation in process efficiency/ optimisation
Brian Scheffe, Head of Anaerobic Digestion and Industrial Effluent, Nijhuis H2OK Ltd Winner – Making the most of digestate
“The Oxford City Council recycling education team are really passionate about finding ways to improve recycling. They have been very creative to enable food waste recycling and were very happy to receive the award.” Martyn Buckley, Commercial Manager, Direct Services, Oxford City Council Winner – Innovation in community and commercial food waste collection 18
AD & Bioresources News | september 2015
Industry Ambassador Awards Industry ambassador awards were presented to three individuals who have gone above and beyond to champion the industry’s interests. Congratulations to: Angie Bywater, Network Manager, BBSRC NIBB AD Network, Tony Fenton, Joint Managing Director, Edina, Bruce Nelson, Director, Compass Renewables
“What excites me is that tonight we’re celebrating some great British engineering – and that’s something which needs to be supported.” Angie Bywater, BBSRC NIBB AD Network Winner – Industry ambassador award
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“It is a great privilege to accept this award – having worked with ADBA for the past six years you can see the positive impact that their work has on the industry. Looking forward to the year ahead, I hope to make the banks as enthusiastic as we all are about AD.” Bruce Nelson, Compass Renewables Winner – Industry ambassador award
UK AD & Biogas Industry Awards 2015 Review The winners Innovation in sewage treatment through AD Sponsored by Winner – Anglian Water Services Ltd The judges rewarded Anglian Water Services Ltd for ‘developing a new process configuration from existing ones, from concept to full scale installation’. They added that ‘this innovation, which maximises the hydrolysis step, can operate at high efficiency, and lowers costs’. NEW: Innovation in community and commercial food waste collection Winner – Oxford City Council Overcoming challenges to participation was the reason that Oxford City Council triumphed in this tough category. The judges were impressed at how the winner identified a low performance rate area through evidence gathering and targeted it successfully on a low budget. Highly commended – Olleco The panel praised Olleco’s ‘innovative, tailored, round-shaped bin design to meet market needs’. Innovation in process efficiency/optimisation Winner – ENER-G Combined Power Ltd At a time when process efficiency is more crucial than ever, the judges highlighted ENER-G’s potential to make smaller scale on-farm AD viable ‘through improving the overall efficiency of smaller scale CHP and maximising the financial returns’. Highly commended – HRS Heat Exchangers In a closely fought category, the judges praised HRS’ technology for the fact it can be easily retrofitted and noted its ‘large potential application for new and existing plants’. Making the most of digestate Winner – Nijhuis H2OK Ltd The ability to remove nitrogen from dewatering liquor offers the potential to recycle this liquor to the digester, thus reducing digestate volumes, and this was what swung the judges’ decision in favour of Nijhuis H2OK Ltd. The panel noted that ‘a reduction of nitrogen in the digested fibre will permit greater application rates to agricultural lands’ and deemed it ‘a good demonstration of process improvement’. Making the most of biogas Winner – GENeco GENeco’s innovative use of biogas was praised by the panel. The company was one of the first to inject to the grid, while at the same time using a proportion of the gas for transport fuel, and has exploited this application to gain exceptional publicity with its ‘bio-bus’. Best supporting service provider Winner – Pegasus Group Pegasus Group triumphed in this category by demonstrating ‘an active approach, pushing projects forward, and showing commitment and engagement with the local community’. Best on-farm AD project Sponsored by Winner – Wyke Farms Following considerable success at last year’s UK AD & Biogas Industry Awards, Wyke Farms has now moved on to gas to grid. The judges were impressed by the company’s constant drive to improve its carbon footprint and maximise its use of biogas.
Best food and drink industry AD project Winner – Olleco By treating waste and feeding the resultant gas back to its customers as biodiesel, Olleco helps the food and drink industry to dispose of tricky and polluting products, which would otherwise be disposed of in a non-environmentally friendly way. The judges commented that the project shows ‘full integration of food waste collections, despite the treatment not being carried out on-site’. Best merchant waste AD project or plant Sponsored by Winner – Agrivert The panel was impressed by the speed at which Agrivert’s plant achieved PAS 110, with the company clearly learning lessons from previous projects. From an engineering perspective, the judges also praised the fact that the facility was built in just three months, also noting that it gained financial backing without feedstock agreements. Highly commended – Biogen In a very tight contest, the judges commended Biogen on its innovative project, whose environmental features make it the first AD plant to achieve CEEQUAL accreditation. Best small scale AD project (sub-250 kW) Winner – Evergreen Gas Evergreen Gas was rewarded for its small scale, farm-based AD operation, which ‘makes good use of high volumes of farm wastes and achieves a reasonable return on investment using conventional sources of finance’. Highly commended – QUBE Renewables The panel praised QUBE Renewables for its practical deployment of micro AD. AD hero/team of the year Sponsored by Winner – Alan Midwinter, SGN In a challenging category, SGN’s Alan Midwinter won the award for his commitment to the company’s AD project and for ‘achieving gas to grid connection in the past 12 months, overcoming several technical hurdles to do so’. The entry included lots of positive quotes acknowledging Alan’s contribution to the industry, which the judges also took into consideration. Highly commended – Jacqui MacCaig, RUR3 Environmental Ltd Jacqui MacCaig was highly commended for her work over the years, which the judges described as ‘highly valuable to the AD industry’. NEW: Best engineering team Winner – Qila Energy The judges were impressed by Qila’s ability to take an ‘innovative technology and further advance it by taking the tanks completely below ground’. The team built several plants in a short space of time and was also praised for managing to ‘get a novel technology into the difficult market of farm waste’. NEW: Best maintenance team Winner – Clarke Energy Showing that it ‘performs above the industry’s benchmarks, with figures to support this’, helped Clarke Energy to triumph in a tight category, with the panel also noting that the company has ‘demonstrated a complete turnkey facility when it comes to serving its clients’. NEW: Best installation/commissioning team Winner – Uniflare Ltd Demonstrating its ability to overcome and resolve a number of challenges saw Uniflare’s team take this award. The judges commented that ‘the installation required highly technical knowledge and demonstrated work across various sites’. Highly commended – Biogen In one of the toughest of all the categories, the judges commended Biogen for its attention to detail and focus on health and safety.
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september 2015 | AD & Bioresources News
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UK AD & Biogas 2015 Review
Stepping on the gas
B
ritain’s booming AD sector reached a significant milestone during UK AD & Biogas 2015. The announcement that Biogen’s 1.2 MW food waste facility in South Wales is now the UK’s 400th AD plant marked a 100 per cent surge in the number of operational plants in just five years, including the water sector – an achievement of which everyone in the industry should be rightly proud. And if the buzz in Hall 3 at the NEC, Birmingham during 1-2 July was anything to go by, AD in the UK still has a lot more to give.
Attracting key decision makers
Since its inception in 2010, UK AD & Biogas has grown nearly five-fold, mirroring the phenomenal growth of the industry, and this year
was no exception. A record number of exhibitors showcased their range of products and services to an AD-focused audience, providing solutions, advice, equipment and expertise for every type of project. Stand holders reported strong footfall across both days, with many also noting an increase in the number of decision makers enquiring for live projects, rather than simply future plans. “This was our fourth consecutive year as an exhibitor, and it was our most successful to date,” revealed Matt Hale, International Sales Manager for HRS Heat Exchangers. “Over the course of the show we saw a 40 per cent increase in visitors from last year, with notable differences on projects that are moving forward, rather than being long-term visions.”
“More than just a sales show – UK AD & Biogas gives us an opportunity to meet and greet our customers, and respond directly to any technical questions visitors may have.” Headline sponsor:
Conference sponsor:
Claudia Wackerbauer, Wackerbauer Machinebau GmbH
Seminar sponsors:
Supporting sponsors:
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“The most focused and productive show we do. If you want to build a biogas plant, this is the event for you.”
“An excellent show, attended by key decision makers.”
“A great insight into the AD industry.”
Dan Jones, Kirk Environmental
Jon Harris, Malmberg Water AB
Paul Nadin-Salter, Chevron Lubricants
AD & Bioresources News | september 2015
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UK AD & Biogas 2015 Review Fuelling debate, imparting advice Alongside the main exhibition, UK AD & Biogas 2015 also played host to a packed conference, two seminar theatres, a Biomethane Vehicle Area, R&D Hub, and specialist advice clinics. The conference featured such leading industry names as Chris Huhne, ADBA’s Strategic Advisor; Tony Glover of the Energy Networks Associations; WRAP’s Dr Richard Swannell; Nicky Conway of Forum for the Future; and the Vice President of the NFU, Guy Smith. The lengthier conference sessions proved popular with delegates and enabled the speakers to get right to the heart of key industry concerns including UK waste policy, on-farm AD, food
For several exhibitors, the show provided the ideal opportunity to make major announcements. As well as Biogen’s success story regarding the 400th UK AD plant, the following companies also had good news to share: Biogas Systems signed a memorandum of understanding with Future Biogas to distribute its Economizer treatment for high-lignin feedstocks; Landia revealed the findings of a University of Aarhus study on its GasMix system; HRS Heat Exchangers announced a significant order from Willen Biogas; and Kirk UK and Greenlane Biogas unveiled their new brandings. Proof, if it were needed, of the importance AD businesses place on UK AD & Biogas.
ADBA’s first Market Report
But it wasn’t just exhibitors who had news to share with the industry. ADBA unveiled our first ever comprehensive Anaerobic Digestion Market Report at the show, compiled by our Market Analyst, Ollie More. Available free of charge to all visitors (and to
“The proven, focused event in the UK for AD and biogas, with no end of good business to be gained.” Hugh Vaughan, Landia UK
security and bioresources. They also provided plenty of opportunity for questions from the floor, on occasion provoking fierce debate. The two seminar theatres remained busy across both days of the show, with many sessions standing room only. Attendees enjoyed presentations on a range of industry hot topics, from biomethane to energy crops, operational performance to digestate, and food waste policy to AD finance. Stuart Easterbrook of the National Grid chaired a session on connecting to the gas grid, telling visitors: “The next stage of our renewables journey is around heat and transport. But, we need the incentives in place around gas to achieve this.” This was followed by a session on how the biomethane market will evolve, which saw Tony Griffiths of the Gas Alliance Group urge government to recognise the benefits of gas for transport, not just electricity: “The flavour of the month is electricity, driven by London and the car market. But this does not work for commercial vehicles. There isn’t a single solution to the transport fuel problem – government has to look at all the available options.”
download from adbioresources.org), the Market Report shows just how far the industry has come, and how much potential we still have to realise. The report underlines the strength of the biomethane market, with over 30 plants in operation at the time of going to print and demand for biomethane as a transport fuel really starting to gather pace. However, the RHI remains crucial to new project development and there is uncertainty surrounding this sector from April 2016. As expected, the figures reveal a significant fall in sub-500 kWe plants in 2015 compared to 2014;
ADBA Board Member Dr David Greenfield, Managing Director of SOENECS, led a debate on improving food waste collections within businesses and local authorities. Trevor Nicoll of Newcastle-under-Lyme Borough Council delivered an insightful presentation about his experiences of food waste collections and AD. “We have to do things differently, as the money is running out,” he revealed to a packed theatre. “We want the ‘stick’ from government (ie landfill ban on food waste), but we also need the waste collectors to offer a ‘carrot’ to enable more local authorities to send their food waste to AD.” yet this sector still grew more than in 2013, or any year before that. Regarding the ongoing issue of unlocking food waste, it’s clear that England is still playing catch-up on food waste policy compared to Scotland, Wales and Northern Ireland. Despite the fact that 1.6m tonnes of food waste is now being processed at AD plants, compared to 0.4-0.5m tonnes in 2010, there remains work to be done to get food waste out of landfill and into AD. But it’s far from a bleak picture. Despite the challenges our industry faces over the coming year, there is much to celebrate: over 400 operational plants; the generation of 7 TWh of biogas per annum; jobs for 4,500 people; and the potential to deliver at least 500 more plants by 2020. As Charlotte Morton concluded in her opening address: “Five years ago, I was talking about the potential in this sector. Now I am able to talk about the major contribution we are making. But this is not the time to stop – now is the time to step on the gas.”
Have you booked for 2016? As our busiest show yet, UK AD & Biogas 2015 delivered more leads to exhibitors than ever before. Little wonder that so many have already booked for 2016. With prime stand places and premium sponsorship packages being snapped up fast, contact us today to secure your place for next year’s industry-leading event. E jamil.ahad@adbioresources.org T +44 (0)203 176 4414 E rachel.mcghie@adbioresources.org T +44 (0)203 176 5418
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september 2015 | AD & Bioresources News
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UK AD & Biogas 2015 Exhibitor Highlights
The one stop shop for everything AD
Biogas Systems announced the signing of a memorandum of understanding with Future Biogas at the show. Future Biogas is now the UK distributor of Biogas Systems’ Economizer SE technology, a front-end treatment system for high-lignin feedstocks such as waste straws and wood chip, which have traditionally been unsuitable for anaerobic digestion. The Economizer ‘explodes’ the dry matter content of these feedstocks, making them available to the bugs inside the digester, and significantly increases gas yields. www.biogas-systems.com www.futurebiogas.com As one of the show’s key sponsors, Chevron’s Paul Nadin-Salter revealed that his company is delighted to be aligned with UK AD & Biogas. “Our products are designed to offer maximum benefit to AD operators,” he stated. “Most of our major customers are here and being able to meet them, and to network with potential customers and fellow exhibitors, gives us a fantastic insight into the industry.” Chevron showcased its range of HDAX gas engine oils, including the HDAX 6500 LFG Gas Engine Oil SAE 40, its premium high performance product for biogas applications. www.chevronlubricants.com
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UK AD & Biogas 2015 saw Landia unveil the findings from a university study into the performance of its externally-mounted GasMix system. Researchers at the University of Aarhus in Denmark found that the Landia system increases methane production by almost 11 per cent in a digester treating agricultural residues, while viscosity is decreased by more than 31 per cent when GasMix is used in a heat exchange tank treating agricultural residue prior to digestion. This allows for a 12.5 per cent reduction in downstream reactor mixing times, saving the equivalent of 210 kWh per day in electrical consumption. www.landiagasmix.co.uk As headline sponsors for the show, Edina once again underlined its commitment to the UK’s AD industry. The company showcased its range of MWM gas engines, in particular the TCG 2016, which can save operators as much as 15 per cent per annum in fuel costs and requires up to 50 per cent less lubricating oil than similar gensets. Joint Managing Director, Tony Fenton, was also presented with an Industry Ambassador Award at the UK AD & Biogas Industry Awards (see p18). www.edina.eu
Exhibiting at UK AD & Biogas for the fourth consecutive year, HRS Heat Exchangers declared this show their most successful to date. The company saw a 40 per cent increase in visitors compared to last year, the most notable difference being enquiries from live projects, as opposed to long-term visions. The company held a packed on-stand press briefing, led by Matt Hale, International Sales Manager, to showcase its Digestate Pasteurisation and Concentration Systems. Matt was joined by Adrian Williams, of Willen Biogas and Cattlegate Farm, who revealed that his company has awarded HRS a contract for a Digestate Concentration System for its 1.5 MW AD plant in Enfield, north London. www.hrs-heatexchangers.com
AD & Bioresources News | september 2015
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Founder ADBA member Kirk UK chose UK AD & Biogas as the ideal platform to unveil its new branding – complete with new logo and website – and were delighted with the response. “We had 11 solid enquiries on the first day alone, including three for projects that we were previously unaware of,” revealed Dan Jones, Senior Business Manager. www.kirk-uk.com
UK AD & Biogas 2015 Exhibitor Highlights Visitors to the Netzsch stand were treated to a full-scale demonstration of a new concept in rotary lobe pumps. The T2 pump’s design allows for easy access to all parts, making maintenance quicker and simpler, thereby reducing downtime. “The belts used in the T2 are from the automotive industry, which makes them very hard-wearing,” explained Bruce Cade, Area Sales Manager. “The gearbox is easy to replace and there’s no need for oil. This novel design is already being used in several UK AD plants and will last around four times longer than a conventional rotary lobe pump.” www.netzsch.com Matthew Kemp and Mark Hulme from Atritor were keen to demonstrate the benefits of the Turbo Separator, which has the capability to reclaim up to 99 per cent of dry or liquid products from their packaging. Boasting a variable shaft speed of 100 rpm to 1,000 rpm to enhance separation efficiency, the system is available in capacities from one tonne per hour to over 25 tonnes per hour. www.turboseparator.co.uk
Following the acquisition of the worldwide business of Greenlane in autumn 2014, Chesterfield Biogas took the opportunity to announce its change of name to Greenlane Biogas. With a brand new identity and over 90 operational sites around the world, including 12 in the UK, Greenlane Biogas is now the largest and most experienced supplier of biogas-to-biomethane upgrading systems. “While our identity will change, we are still very proud of our development over the past seven years,” said Managing Director Stephen McCulloch. “As we move forward, we will retain the essence of what our reputation has been built upon and work hard to maintain and further develop the very strong customer and partner relations that we have established in the UK and Europe.” www.greenlanebiogas.co.uk Inenco’s novel way of promoting its ‘menu’ of power and gas purchasing agreements (PPAs and GPAs) caught the eye of visitors to UK AD & Biogas. With over 50 years’ experience in energy management, the company’s team of experts was on hand to help AD operators maximise their return on energy generation. Inenco’s range of options for PPAs and GPAs promises to help operators achieve the best price for the power or gas they export to the grid. www.inenco.com
Alvan Blanch is a British manufacturer of machines and integrated systems for the drying and processing of biomass, agricultural and waste products. Dolly Stephens was on hand to outline to visitors the variety of products that can be processed through the company’s range of driers. www.alvanblanchgroup.com Returning exhibitor PRM Waste Systems used UK AD & Biogas to showcase the RUNI Screw Compactor, which is ideal for separating food waste from its packaging. “We had an excellent show last year, with a great response to our stand, so are pleased to be back exhibiting again this year,” commented Director Tony Gardner. www.prmwastesystems.com Providers of analytical services to the renewable energy sector, Livelab’s eye-catching stand drew plenty of visitors. “Exhibiting at UK AD & Biogas is a great way for us to raise awareness of our brand and promote our range of services to the AD industry,” said Laboratory Technician Elizabeth Blades. www.livelab.co.uk Show sponsor Uponor showcased its pre-insulated pipe systems, used to transport hot and cold fluids and ideal for biogas applications. Visitors to the company’s stand were shown a full-scale model detailing the pre-insulated pipe composition, including; a flexible, ribbed jacket made of impact-proof polyethylene; low weight PE-X foam heat insulation; a two coloured ‘dog bone’ which prevents flow mix ups and return connections; and a corrosion-proof, oxygen impermeable carrier pipe, made of PE-X material. www.uponor.co.uk
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september 2015 | AD & Bioresources News
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Advice Clinic: Regulatory advice
Advice Clinic: Regulatory Advice In our regular advice column, ADBA members provide answers to some common AD queries.
Q A
“What is the outlook for RHI payments for AD from an investor’s point of view?”
“Several projects that were relying on the RHI to maintain financial viability are no longer able to progress, since investors now require their minimum internal rate of return (IRR) to be reached without including any RHI revenue. For a 250 kW dryer costing around £150,000, for example, RHI payments could have provided £100,000 income for the next 20 years – losing this income stream causes the IRR to crash. Because of the uncertainty surrounding the RHI post-March 2016, city investors have been excluding these streams in their modelling since the start of the year. And even with the new government in place it may still be autumn before any certainty is given.”
Q A
Anne Laleman, Director, Alpha Financials Environmental T +44 (0)118 934 9487 E anne.laleman@alpha-financials.com www.alpha-financials.com
“We are preparing a planning application for a proposed AD facility. What odour control measures are likely to be required in order to get planning permission and an environmental permit?”
“The level of odour control required to satisfy both the local planning authority and the regulator will depend on the nature of materials handled and the proximity of the site to residential premises. Where highly odorous materials such as food waste are received, a high level of odour control is likely to be required. This typically includes enclosing the reception and processing areas, and the use of odour control technology (such as suitably designed biofilters) to treat the odours in the extracted air. Where less odorous materials, such as energy crops, are received, a lower level of odour control is likely to be acceptable, particularly if the nearest receptor to the site is some distance away. Odour dispersion modelling is likely to be required to demonstrate to the planning authority/regulator that sufficient odour control is proposed. An Odour Management Plan, demonstrating how odour control will be maintained, and a commitment to undertake routine performance testing of odour control plant are also likely to be required.”
Q A
“In practice, we have not yet seen the expected increase in fines. However, the recent Court of Appeal judgment in R v Thames Water Utilities Ltd confirms that much larger fines could soon be the norm. The new guidelines take a mechanistic approach to the calculation of fines and take into account, among other things, the size of the offender – there is a separate category for ‘very large organisations’. Thames Water appealed against a £250,000 fine for failing to prevent the discharge of untreated sewage into a waterway. The Court not only upheld the fine but said it would have had no hesitation in imposing a higher one – it would impose whatever level of fine was necessary to punish and deter, even up to 100 per cent of the offender’s pre-tax profit. This should be a strong incentive for organisations to review their systems and procedures.”
Paul Ottley, Senior Consultant, Odournet UK Ltd T +44 (0)1225 868869 E pottley@odournet.com www.odournet.com
Robert Starr, Associate, Walker Morris LLP T +44 (0)113 283 4529 E robert.starr@walkermorris.co.uk www.walkermorris.co.uk
A
“First of all, when designing your AD plant you need to consider odour reduction, as well as health and safety. In your design considerations you will need to identify any local receptors around the site, ie neighbours, and how you will contain odour in the event of a major plant failure, for example a power failure. The best guide to help you is the Environment Agency’s Horizontal Guide H4: ‘Odour Management - How to Comply with Your Environmental Permit 2011’.” Terence Brownhill, ADBA Director, Chair of ADBA’s Training, Safety and Environmental Management Group, and Business Development Manager of PROjEN (part of Capita) T +44 (0)1928 752538 E terence.brownhill@capita.co.uk www.projen.co.uk
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“Are the new sentencing guidelines for environmental offences starting to have an effect?”
Q A
“What is COMAH and how does it affect me as an AD plant operator?”
“The COMAH ‘Control of Major Accident Hazards’ regulations are intended to prevent major accidents and hazards arising from the processing, storage or use of identified COMAH substances, by defining the safety management requirements to ensure that any effects on people and the environment in the event of a major accident are limited. They are enforced by the Health and Safety Executive (HSE), with support from the Environment Agency and local authorities. It is your responsibility as the AD plant operator to determine and notify the HSE if your establishment is subject to these regulations. You can determine whether COMAH applies to
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you by identifying whether you process, use or store dangerous substances, and whether the cumulative quantity of these COMAH substances will equal or exceed the thresholds stated in the regulations. Failure to notify the HSE or comply with these regulations will result in prosecution. Biogas is already classified as a COMAH dangerous substance under the flammable gas category. The updated COMAH regulations came into force on 1 June 2015 and now include upgraded biogas, which has been given the same status as natural gas. The total gas quantity contained in the system will need to be accounted for under COMAH, including gas from the digesters, through all pipework and storage, to the CHP engines or flare and to any upgrade plant up to the grid injection point. Most gas to grid processes include LPG gas, which is classified as a COMAH dangerous substance. The qualifying threshold value for flammable gas is 10 tonnes and for LPG, which is classified under the liquefied flammable gases category, the threshold is 50 tonnes. These thresholds are significantly larger than the volume of gas which is stored at most AD plants. Digestate, although not identified in the Classification, Labelling and Packaging (CLP) Regulations, could be classified as a dangerous substance under COMAH should it be deemed to have hazardous properties as an aquatic pollutant. The European Biogas Association is currently undertaking testing to assess whether this is the case, but it is ultimately the responsibility of a site operator to know whether the COMAH regulations will apply to them.” Dr Zaffer Khan, active member of ADBA’s Training, Safety and Environmental Management Group, and Director of Rowan House Ltd T +44 (0)121 422 3311 E zaffer@rowanhouse.co.uk www.rowanhouse.co.uk
Q A
“What’s the one thing I should have done in preparation for Ofgem ISAE 3000 Renewables Obligation Sustainability Audit annual reporting?”
“ISAE 3000 reporting requires the preparer (eg the plant operator) and the verifier (eg the auditor) to present to Ofgem the validity of management information on the whole process – feedstock inputs, AD operational production, and Ofgem data submitted. The most important thing an AD operator can do is to write down on one side of A4 paper the key controls and the key control owners. From this one page, the operator can then work with the auditor on how this information gets used and processed during the reporting year; who is making any manual adjustments; and who is checking it. This will then make it easier to determine the best form of evidence to keep and who is responsible for it, affording the plant operator a more rewarding and stress-free ISAE 3000 audit.” Andrew Riley, Director of Assurance Services, Assure UK T +44 (0)203 540 3171 E andrew.riley@assureuk.co.uk www.assureuk.co.uk
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Next issue: On-farm AD Send your queries on any aspect of on-farm AD to kate.oreilly@adbioresources.org
sales@greenlanebiogas.com
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september 2015 | AD & Bioresources News
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Members’ News & Views
Operator News
Tamar Energy sites reach digestate quality standard
Biogen plant becomes UK’s 400th AD facility Biogen’s new food waste plant in South Wales marks a major milestone for the AD industry – the UK’s 400th operational AD facility. The Bryn Pica plant is the third project to be delivered as part of Biogen’s ongoing partnership with the Welsh Biogen’s Julian O’Neill at the company’s Bygrave Lodge plant, which also become operational this year Government. The 22,500 tonnes site, commissioned in June 2015, is now exporting 1.2 MW to the grid. The site will take predominantly household waste but is also geared up to process commercial and industrial waste streams. “I am delighted to see the successful commissioning of our sixth plant, which has been delivered on time and to budget,” enthused Julian O’Neill, Biogen’s Chief Executive Officer. www.biogen.co.uk
Tamar Energy’s AD facilities in Retford, Notts and Holbeach, Lincs have been awarded PAS 110 certification, which ensures quality and consistency in digestate. Tamar Energy digestate is currently being used successfully by Worth Farms, its partner at Holbeach, on its potato and vegetable crops, generating estimated savings of £60,000 per year, and the operator expects its other AD plants to quickly follow suit in achieving the quality standard. Jeremy Neal, Tamar Energy’s Digestate Manager, comments: “Digestate is going to become an increasingly important aspect of the business case for commercial AD. Having our plants PAS 110 accredited allows us to show our customers that the biofertiliser we’re providing is of the highest quality possible.” www.tamar-energy.com The 1.4 MW Tamar Energy facility at Worth Farms, Holbeach, where digestate is being used successfully
Severn Trent Water – Setting the standard in renewable energy generation member As part of UK AD & Biogas 2015 (see p20 for full review), Severn Trent Water invited delegates to visit its sewage treatment works at Minworth, and neighbouring Coleshill food waste AD plant. Editor Kate O’Reilly found out how the company’s plans stretch beyond sewage digestion…
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visit
As one of the largest of the ten regulated water and sewerage companies in England and Wales, Severn Trent services more than 4.3m households and businesses in the Midlands and mid-Wales. Last year, the company produced 252 GWh of renewable energy – enough to power a town the size of Stafford – and its five-year vision comprises six commitments, one of which is to be the ‘standard setter in renewable energy’. It’s already well on its way to achieving this aim – in 2014-15, 28 per cent of the power it used was self-generated renewable energy.
Among the 48,500 tonnes of food waste processed at the site each year is waste from the NEC and Birmingham markets. The energy generated as a result is supplied to the sewage treatment works – meeting all its needs – with any surplus exported to the grid.
While Severn Trent has a 60-year history of processing sewage sludge through AD, in recent times it has branched out. In 2010, it opened the Stoke Bardolph crop AD plant, and in 2014 it injected the first sewage gas into the national grid, Severn Trent’s Coleshill using Malmberg food waste AD plant water wash biogas upgrading technology. In January of this year, Severn Trent received its first delivery of food waste at its £13m Coleshill food waste plant, which was built by Agrivert.
“We are investing £190m in The site processes 48,500 tonnes of food renewable energy in the Midlands waste per annum over the next five years, with a view to taking our energy self-generation from 28 per cent to around 50 per cent by 2020,” explained Neil Liddell-Young, of Severn Trent’s Renewables Strategy and Commercial Development team. “We’re evaluating up to three more food waste plants, as well as the possibility of expanding our crop digestion facility, and are also investing over the next five years to generate around 20 per cent more energy from our sewage sludge, which will have the added bonus of delivering a better quality digestate. Demand for our services is only set to grow, and with energy prices rising ever upwards, making a strong commitment to renewable energy is a way to manage risk to our business, and further off-set our carbon emissions.” www.stwater.co.uk www.malmberg.se www.agrivert.co.uk
AD & Bioresources News | september 2015
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Membersâ&#x20AC;&#x2122; News & Views www.ttpumps.com
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Members’ News & Views Clearfleau starts construction of Europe’s first dairy-based gas to grid project Clearfleau has finished the first stage in a major sustainability project for First Milk, at one of the UK's largest cheese creameries. Once operational, the Cumbrian-based plant will feed biomethane into the gas grid – the first dairy processing site in Europe to do so. When commissioned, the digesters will generate 1,000m3 per day of biogas, much of which will be upgraded for injection into the national grid, with some used in the creamery for steam generation. Craig Chapman, Clearfleau Chief Executive, stated: “Use of aerobic treatment for dairy processing residues is outdated. The revenue and energy contribution from AD offers a much better return than a new aerobic plant.” www.clearfleau.com
This 3D drawing shows how the new Clearfleau AD plant for First Milk will look
HRS helps turn London’s food waste into fertiliser
HRS is helping Willen Biogas make the most of its digestate
HRS Heat Exchangers has won an order for its novel Digestate Concentration System (DCS) from Willen Biogas, at a new multi-million pound AD plant under construction in Enfield, north London. The 1.5 MW plant at Cattlegate Farm will process 27,000 tpa of London’s food waste, generating enough electricity to power around 1,750 homes. The HRS system will reduce the requirement to store digestate by around 40 per cent, as Adrian Williams, Chairman of Willen Biogas and partner in D. Williams & Co, which owns Cattlegate Farms, explains: “We will be producing around 41,000 tpa of liquid digestate, which will be full of nutrients for the farm, but we want to minimise the amount of traffic going across the farmland, and the amount of storage needed. The DCS system from HRS will help us to have more efficient spreading windows for the farm, making digestate handling a lot more manageable.” In addition to reducing the volume of digestate produced while maintaining the nutrient concentration, the HRS system also reuses as much heat as possible, improving the efficiency of the entire AD plant. www.hrs-heatexchangers.com
First US application of GE’s Monsal technologies GE has announced that the city of Rexburg, Idaho, has selected the company’s Monsal advanced AD and Monsal 70 technologies to treat sewage waste at the city’s wastewater treatment facility. The project represents the first North American application of GE’s Monsal technologies, and will allow Rexburg and other municipalities to meet federal standards for disposing of treated biosolids. GE announced it had agreed to acquire Monsal in July last year. www.monsal.com
AeroThermal partners with Jones Celtic BioEnergy
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AeroThermal Group has entered a partnership with Jones Celtic BioEnergy (JCBE) to develop projects in the waste and renewable energy field, with the two companies signing a memorandum of understanding. Dr Andrew Walsh, Director of JCBE, comments: “AeroThermal’s expertise in advanced thermal hydrolysis and autoclave technology makes them the perfect company for us to partner with in waste and sustainable biomass projects. There is no doubt that we can see some very exciting opportunities working together.” www.celticbioenergy.com www.adbioresources.org adbioresources.org
R&D Update What do the Paris climate talks have to do with the price of digestate?
For information and advice on our R&D activities, contact our Market Analyst, Ollie More T +44 (0)203 567 0751 E ollie.more@adbioresources.org
A
tonne of manufactured blended fertiliser (of 50 per cent N, P and K) costs about £300. However, sellers of digestate currently find it difficult to receive this price for the nutrient fraction of their product, partly due to its bulky nature and moisture content. While the sampled value of nutrients in a tonne of food waste whole digestate may be worth £6, AD operators will often struggle to receive £4. Meanwhile, the Soil Association has pointed out that producing a tonne of manufactured nitrogen fertiliser emits seven tonnes of carbon dioxide-equivalent into the atmosphere, through the process of converting natural gas and atmospheric nitrogen into fertiliser for use on farms. Fertiliser production (including phosphates and potassium) is responsible for 1.2 per cent of all global emissions. The question is, how should these emissions be accounted for? One method would be to add the additional costs of climate change to the economy (flooding, drought, etc), to the direct financial cost of production; for example, by imposing a ‘carbon price’ on manufacturers. Assuming a cost to the economy of £70-£200 per tonne CO2e (depending on whether you assume the Treasury’s carbon floor price or Defra’s estimate of the cost of abating carbon from agriculture), this would see £245-£700 per tonne added to the cost of manufactured fertiliser. Nitrogen makes up only a proportion of fertiliser, but assuming equivalent emissions from phosphates and potassium – which may not currently be an accurate assumption, but may become more accurate as more energy-intensive methods of extraction and processing are needed in order to access depleting reserves of phosphates – the full economic cost of manufactured fertiliser could be between 80-230 per cent higher than the current price. This would lead to an increase in the value of digestate to £11-£20 per tonne, resulting in a huge increase in innovation and capital investment by firms to ensure their product could realise this value. WRAP and the International Energy Agency have already published a great deal of research and best practice on how the full value of digestate can be realised – for more info go to http://bit.ly/1tgJnkb or www.iea-biogas.net/technical-brochures.html One way to provide the incentive to produce this transformation in digestate innovation is to force manufacturers of artificial fertilisers to meet the cost of the carbon they emit. But this would need to apply to all manufacturers globally, or we run the risk that UK fertiliser manufacturers may be outcompeted by their foreign counterparts. The 2015 United Nations Climate Change Conference, being held this December in Paris, can deliver such an outcome – alternatively, the UK Government could ban N, P and K in food waste and sewage sludge from being sent to landfill or incineration. Either way, these high level talks could have a big impact on the future of digestate.
www.biogaskontor.de
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Policy
DECC to change RHI degression forecasting As members of our biomethane working groups will be aware, DECC has been working on an issue with its biomethane forecasting methodology which could mean plants effectively count twice towards degression. In short, the current methodology assumes that a plant will be operating at full capacity from the moment it is commissioned. But, as we know, plants gradually ‘ramp up’ their output. The way the forecasting estimate works can appear to take plants into account as new capacity on the scheme twice: first, when the developer submits an estimate of output to Ofgem; and second, when they begin to produce more gas. This could mean that a single plant counts twice towards degression, making tariff reductions more likely. To address this, we have been working closely with DECC, and the department has now implemented a policy proposal. In summary, it aims to resolve the problem by: • Reducing expected spend for new plants to adjust for the overestimates made by existing plants on the scheme, to make forecasts more accurate; • Transitioning from the applicant’s estimate to using metered data only after four periodic support payments have been received, and using data from only the third periodic support payment onwards to mitigate underestimates. Meanwhile, various members have been asking about the likely level of degression of the RHI biomethane tariff in October. While, of course, a large number of factors affect the degression calculation, making even the degression fact sheet difficult to comprehend, DECC has offered clarification in one area.
For up to the minute information and advice on regulations, consultations and government news, contact our Head of Policy, Matt Hindle T +44 (0)203 176 0591 E matt.hindle@adbioresources.org If you follow DECC’s flow chart over the last quarter (February-April 2015), biomethane hit the following categories: • The total scheme expenditure (all technologies) was more than 50 per cent of what was expected; • Forecast spends for the biomethane tariff category exceeded the trigger; • The biomethane tariff category was reduced in the last quarter (although implementation of the 2014 consultation meant industry had a ‘holiday’ so tariffs were not reduced); • Growth in the previous three months is less than 50 per cent of the predicted rate of increase. This should have meant that we would not have faced a degression – however, there is one additional factor: due to the 100 per cent total scheme trigger being hit, the biomethane tariff was actually reduced by five per cent in July. The level of degression in a previous quarter can impact the degression in a following quarter, but DECC has clarified that this does not apply if the tariff is degressed only due to the total scheme expenditure exceeding the 100 per cent trigger, and not due to the tariff category. This is important as it gives us greater confidence on the likely degression the tariff will face in October. Therefore, if we follow DECC’s flow chart we can deduct the following: • The total scheme expenditure (all technologies) will be more than 50 per cent of what is expected; • Forecast spends for the biomethane tariff will more than likely continue to exceed the trigger; • As DECC clarified, the biomethane tariff category was not reduced in the last quarter; • Growth will not be taken into consideration as the tariff was not officially reduced. This means that in October the tariff will most likely be degressed by ten per cent. For more information, contact william.bushby@adbioresources.org
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Policy New EA reports reveal ADâ&#x20AC;&#x2122;s environmental performance
The Environment Agency (EA) has published two reports offering a summary of the environmental performance of industrial activities in England in 2014. The reports reveal both concerning and encouraging trends and statistics for the AD industry. On a positive note, the vast majority of permitted sites in the biowaste sector (including AD, composting and other treatment processes) were rated as Band A, B or C for compliance, with only five per cent of sites falling into the poor compliance bands (D, E and F). The number of serious pollution incidents caused by the AD sector has more than halved since 2012, while the number of permitted facilities continues to rise. That said, of concern is the revelation that between 2012 and 2014 the biowaste treatment sector (which includes AD) caused a higher number of serious pollution incidents than any other regulated sector, in proportion to the number of permits issued. This is a very troubling statistic at a time when operators are making concerted efforts to ensure they operate well and avoid regulatory issues. This means that the EA will continue to assess whether it needs to take further action to regulate the biowaste sector. Of course, as well as harming the environment, pollution incidents draw negative attention from the media and the public, which damages the reputation of the entire industry. The biggest cause of incidents at sites with permits was identified as containment and control failures. Other reasons cited are poor management and excessive waste, or poor storage of waste, on site. This highlights the need to continue to work on pollution prevention, and to continue to demonstrate improvements.
Get involved Clearly, while there have been some encouraging improvements, thereâ&#x20AC;&#x2122;s still considerable work to do. Members are therefore encouraged to attend our forthcoming ADBA Regulatory Forum, on 7 October at Walker Morris LLP offices in Leeds, featuring presentations from the EA, HSE and APHA â&#x20AC;&#x201C; see p35 for details. For any regulatory enquiries, contact our Environment and Regulation Manager, Jess Allan: jessica.allan@adbioresources.org Continued>> www.adbioresources.org adbioresources.org
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Policy
ADBA defends AD from government assault on renewables ADBA has responded to DECC’s consultation on the proposed removal of pre-accreditation for Feed-in Tariff (FIT) technologies, including anaerobic digestion. The department admits that the move will reduce certainty for developers, and therefore deployment, but is pushing for the change regardless. DECC’s rationale for the change is that it will help control costs at a time when government is concerned about overspend of the Levy Control Framework (LCF), which sets the budgets for FIT, RO and CfDs. However, DECC has not published detailed analysis of its assumptions on LCF spending, or how this proposal will affect it. The proposal has been separated from the wider FIT review, which we still expect to be launched by the end of September. By removing pre-accreditation for FIT technologies, projects will only receive the tariff applicable at the time they are commissioned. It is not clear from the consultation document when DECC proposes the changes to take effect, but the fact that this is a four week consultation strongly suggests that they intend to move quickly. It is therefore a real possibility that pre-accreditation will not be available by the end of this year – plants not pre-accredited by then will have to review their viability, as the applicable tariff will be significantly lower by the time of commissioning. Within the AD industry, around 90 per cent of plants applying for FIT in the past year have used the pre-accreditation mechanism. Its removal will naturally
cause the April 2016 (and potentially the October 2015) degression to impact more projects, and is likely to prevent projects coming forward. Many members have contacted us with evidence of projects which have been affected. The implications for the future of the degression mechanism are not clear, but given the focus on ‘cost control’, it is likely that degression will remain in place. Without pre-accreditation, future degression would be based on actual deployment in a particular year, which is likely to be lower. However, DECC’s intention to retain strong cost control is clear. The consultation announcement came mere weeks after the Chancellor of the Exchequer, Rt Hon George Osborne MP, announced in the Summer Budget 2015 the removal of the Climate Change Levy exemption for renewables. This measure alone will reduce revenue by around £5 per MWh, which for the 2.2 TWh of electricity generated by the AD industry, will cost around £11m per year, impacting investor and operator confidence. Taken together, the £11m cut announced in the Summer Budget, uncertainty over the future of the RHI beyond next year, the FIT pre-accreditation review, and ongoing degressions are having a hugely negative impact on investor confidence. Without recognition for the return on investment offered by AD, there could be calamitous results for the future development of our industry, the wider green economy and, most significantly, the UK’s ability to meet those targets that are so vital to our nation’s continued prosperity and security.
Making the case for continued support ADBA is making a strong case for retaining industry support, both in the pre-accreditation consultation and in the comprehensive FIT review. At its core, this is about demonstrating what industry can deliver: we provide a very high return for the government’s investment. This includes: • The cost-effective delivery of greenhouse gas savings, and other government targets; • The baseload, flexible nature of biogas – in relation to nuclear, Amber Rudd has said that, ‘we have to have secure baseload [electricity] so you should not be surprised that we are prepared to pay for it’; • Providing the best treatment option for food waste, for which separate collections are essential if government is to reach its recycling targets;
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• The nutrient and carbon benefits of digestate; • Supporting energy and food security, reducing imports of gas and artificial fertilisers; • Providing jobs in manufacturing and the rural economy, helping economic productivity; • Delivering an ever more efficient, cost-effective industry, and; • The global potential for exports from an established British AD industry. Taken together, we can demonstrate that the economic value of all of AD’s benefits makes our sector extremely cost-effective.
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Operator & Working Groups RHI in the spotlight at Biomethane to Grid meeting
Get involved Our operator and working groups cover the whole spectrum of the AD industry, supporting operators, shaping debate, raising standards and influencing policy. To find out more, or to attend a forthcoming meeting, go to the members’ area at adbioresources.org or contact our Policy Officer, Will Bushby: T +44 (0)203 176 5440 E william.bushby@adbioresources.org
The future of the RHI topped the agenda at the June meeting of our Biomethane to Grid Working Group. Discussions began with the recent five per cent biomethane degression and moved on to a paper that ADBA is developing, which considers the future growth of the biomethane sector and the budget that would be needed to support it. The paper also looks at the degression mechanism, sustainability criteria, and how we can make the case for the value for money that biomethane offers, particularly through the non-energy benefits of AD.
We have now submitted our response to the consultation in support of the third option – to read our response go to adbioresources.org
Attention then turned to the Energy Networks Association’s consultation on reducing the requirements for CV measurements at biomethane sites. The proposed options were: • Option One – No change to current regime • Option Two – Modified Ofgem Letter of Direction • Option Three – Removal of the requirement for Ofgem to ‘direct’ low-flow biomethane sites.
Finally, Ollie More gave a presentation on the complex subject of sustainability criteria. As members are no doubt aware, the criteria come into force on 5 October 2015 for both domestic and non-domestic RHI, and will apply to all new and existing participants generating heat (or heat and power) for biomass or biogas, as well as those producing biomethane for injection. Find out more at adbioresources.org
Get involved
© Greenlane Biogas
The group’s next meeting, to be held in the early autumn, will include a site visit to a biomethane to grid plant. To attend or find out more, contact william.bushby@adbioresources.org
Training and Safety Group works to reduce secondary containment incidents Members of our Training, Safety and Environmental Management Working Group met at UK AD & Biogas 2015 to review progress of their work on secondary containment issues at AD plants. Secondary containment has become one of the Environment Agency’s main concerns for the industry, due to a number of pollution incidents resulting from containment failures. The group is therefore producing a tool to help operators and regulators determine secondary containment requirements for plants, using a risk-based approach. It is hoped that this will enable operators to understand, and plan for, the requirements at an early stage of project development, rather than being taken by surprise further down the line. Secondary containment requirements can have significant cost implications for operators, so must be factored in when assessing viability. The work is ongoing but the group is hoping to progress this over the coming months, incorporating it into ADBA’s wider work on best practice. For further information, contact jessica.allan@adbioresources.org
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AD & Bioresources News | september 2015
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Upcoming Events RWM 2015
Europe's leading event for resource management professionals; a three-day event that helps influence the way we think about and manage waste, attracting more than 700 brands and over 13,000 visitors. www.rwmexhibition.com
NEC Birmingham 15-17 Sep 2015
23 Sep 2015
7 OCT 2015
Biomethane & Gas Vehicle Roundtable
As part of our ongoing strategy to support biomethane, ADBA is convening a roundtable of members, including our transport and gas to grid working groups, and other companies and organisations interested in the future of biomethane for both grid injection and transport. Policy discussions need to be joined up with debate around the future of the RHI, and how biomethane should be supported both for transport and the grid over the longer term. Roundtable by invitation only. For more information, contact barbara.landellmills@adbioresources.org
Bristol
ADBA Regulatory Forum Walker Morris LLP offices, Leeds
ADBA Members’ Meeting nov 2015
Location tbc
ADBA Farmers’ Meetings NOV 2015
11-12 Nov 2015
3 Dec 2015
Shropshire and Penrith
Farm Business Innovation Show NEC Birmingham
ADBA National Conference 2015 One Great George Street, London
This free, member-only forum will update operators, developers and consultants with the latest changes to regulation and compliance. Featuring a case study, and presentations from the EA, HSE and APHA, members will also be able to question the regulators directly. adbioresources.org
With uncertainty around a number of policy issues, the autumn Members’ Meeting will provide crucial updates on the latest developments to the FIT, RHI and biomethane for transport, looking at implications for companies across the industry. Including lunch and a free drinks reception, this event is also an excellent networking opportunity. Register now at adbioresources.org
These informal meetings are a useful introduction to AD for farmers new to the industry, providing an overview of the AD options suitable for your farming business. The meetings also provide guidance on where to get support and expert advice. To register your attendance, contact barbara.landellmills@adbioresources.org
The event for farmers, land owners and estate owners looking to diversify, innovate and make more from their land. Featuring 150 seminars, 6,000 visitors and 300 exhibitors, find the inspiration, support and resources needed to make your rural business a success. www.farmbusinessshow.co.uk
In the aftermath of the general election and November's spending review, our seventh ADBA National Conference will outline a strategic vision to build a world class AD industry. This year’s agenda will pay particular attention to the impact of key government decisions on the Feed-in Tariff (FIT), the Renewable Heat Initiative (RHI) and food waste collections, and look at how the industry will develop a response. adbioresources.org
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Membership Matters Meet Jay Abai, our new Head of Membership Jay Abai, our new Head of Membership, joins ADBA from The International Business Structuring Association and has previously worked for The ENDS Report and The Economist. Jay will ensure that we continue to engage with our members and that their voice is being heard.
How would you describe yourself?
Entrepreneurial – I have launched a few products in my career and really enjoy finding imaginative solutions, following the process from inception to launch. Knowing that I have enhanced a business and provided a better service to members is a great feeling.
Why did you want to work for ADBA?
Having previously worked for trade associations, I was excited to join ADBA and work in a sector which has grown rapidly and become a popular area for investment. Through its work influencing policy and disseminating best practice, ADBA has gained a strategically important position as the voice of anaerobic digestion in the UK. I am looking forward to speaking to our members and learning how we can provide them with greater support and value.
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sales@kirk-uk.com AD & Bioresources News | september 2015
What is your greatest strength? Over the years, I have been successful in building and sustaining good relationships with members. The ability to listen to members' needs, as well as understanding their varying business requirements, and then translating these into services which produce tangible benefits will be invaluable in my new role. Contact Jay: T +44 (0)203 176 5416 M +44 (0)7908 162794 E jay.abai@adbioresources.org
Welcome Jess “After studying Environmental Science at university, I worked for a consultancy specialising in waste regulation and environmental management, delivering applications for Environmental Permits. My role with ADBA will involve supporting members with regulatory issues and helping the industry to raise its environmental performance through the development and implementation of industry-led best practice. I am now the main point of contact on regulatory matters, so please feel free to get in touch.” Jess Allan, Environment and Regulation Manager T +44 (0)203 735 8380 M +44 (0)7496 309372 E jessica.allan@adbioresources.org
www.adbioresources.org adbioresources.org
www.kirk-uk.com
@kirkenviro
Membership Matters
www.geotechuk.com sales@geotech.co.uk
info@hrs-he.com www.adbioresources.org adbioresources.org
www.hrs-heatexchangers.com september 2015 | AD & Bioresources News
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Membership Matters RHI and FIT top of agenda at National Conference
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n the aftermath of the general election and November's spending review, our seventh ADBA National Conference will outline a strategic vision to build a world class AD industry. This year’s agenda will pay particular attention to the impact of key government decisions on the Feed-in Tariff (FIT), the Renewable Heat Initiative (RHI) and food waste collections, and look at how the industry will develop a response.
The AD industry has grown by over 600 per cent outside of the water sector over the past five years and is now moving beyond the 400 plant industry milestone announced in July. To maintain this growth, our National Conference will bring together leading political and industry figures to evaluate the impact of crucial government decisions on the RHI and FIT, and encourage the implementation of policy which: facilitates uptake in source-segregated food
waste collections; incentivises biomethane for transport; avoids cumbersome bioenergy sustainability criteria; and mitigates the potential impact of the new Circular Economy package on the developing digestate market. In addition to crucial policy advice, the conference will include Q&A sessions, networking and table top exhibitions. Register your attendance today at adbioresources.org
TEAM Chief Executive, Charlotte Morton T + 44 (0)203 176 0503 E charlotte.morton@adbioresources.org PA to Chief Executive, Eleanor Maroussas T +44 (0)203 567 1041 E eleanor.maroussas@adbioresources.org Strategic Advisor, Chris Huhne E chris.huhne@adbioresources.org Head of Policy, Matt Hindle T +44 (0)203 176 0591 E matt.hindle@adbioresources.org Policy Officer, Will Bushby T +44 (0)203 176 5440 E william.bushby@adbioresources.org Market Analyst, Ollie More T +44 (0)203 567 0751 E ollie.more@adbioresources.org Environment and Regulation Manager, Jess Allan T +44 (0)203 735 8380 E jessica.allan@adbioresources.org PR & Parliamentary Affairs Manager, Derek Sivyer T +44 (0)203 176 5441 E derek.sivyer@adbioresources.org Head of Membership, Jay Abai T +44 (0)203 176 5416 E jay.abai@adbioresources.org
Welcome new ADBA members! AGL Energy Ltd Ashfords B.A Wood Burnham Environmental Services Ltd Cockerham Green Energy Demetra Ltd Excellion FEC Services Ltd Flare Products Freedman & Partners LLP Gemidan Ecogi A/S Goals Project Management & Engineering Support Hydravalve UK M Power World Manufacture à Besançon SARL (MaB) NG Bailey (Arla Energy Centre) Northumbrian Water Oranmore Environmental Services Ltd Rapid Accommodation RAW Energy Strathendrick Biogas Tambowie Biogas Ltd United Utilities Total Solutions Ltd
Sales Manager Jamil Ahad T +44 (0)203 176 4414 E jamil.ahad@adbioresources.org Sales Executive, Rachel McGhie T +44 (0)203 176 5418 E rachel.mcghie@adbioresources.org Head of Marketing Services, Helen Reddick T +44 (0)203 176 0592 E helen.reddick@adbioresources.org Event Producer, Ed Gavaghan T +44 (0)203 176 4415 E edmund.gavaghan@adbioresources.org Senior Marketing Executive, Vera Gerson T +44 (0)203 176 0590 E vera.gerson@adbioresources.org Senior Marketing Executive, Kelly Oxenham T +44 (0)203 176 5417 E kelly.oxenham@adbioresources.org
“ADBA membership provides excellent networking opportunities, access to government and regulatory bodies and a voice within the AD industry.”
Marketing Executive, Barbara Landell Mills T +44 (0)203 176 7767 E barbara.landellmills@adbioresources.org Database Marketing Assistant, Andre John T +44 (0)203 567 0769 E andre.john@adbioresources.org Accountant, Amy Pritchard T +44 (0)203 176 6962 E amy.pritchard@adbioresources.org
Mark Storey, Sales and Marketing Manager, Purac Puregas
Office Executive, Peter Mackintosh T +44 (0)203 176 0503 E peter.mackintosh@adbioresources.org
“We joined ADBA to get an inside track on the issues facing the AD industry. It’s one of the most proactive and informative trade bodies in the renewables industry and we’re finding it great value for money.” John Quinton-Barber, Managing Director, Social Communications 38
AD & Bioresources News | september 2015
AD Finance, Bruce Nelson, Director of Compass Renewables T +44 (0)1732 464495 E bruce@compassbusinessfinance.co.uk AD & Bioresources News Managing Editor, Kirsty Sharpe T +44 (0)1920 821873 E kirsty.sharpe@adbioresources.org AD & Bioresources News Editor, Kate O’Reilly T +44 (0)7894 039609 E kate.oreilly@adbioresources.org
www.adbioresources.org adbioresources.org
Exhibitor Profiles
sales@euroby.com
www.euroby.com
www.adbioresources.org adbioresources.org
september 2015 | AD & Bioresources News
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